In keeping with the spirit of the title, this article will be short and sweet. Truly it’s meant to be an uplifting message that hopefully resonates with you.
As you begin or continue to forge a path toward financial freedom, I encourage you to keep it simple. Do not feel compelled to complicate the journey as complexity typically precludes progress in this realm. Yes, there are situations where complexity is necessary for various reasons; however, 99% of the time in personal finance, complexity is unnecessary.
So free yourself from the burden of “too much” in the financial landscape:
- Scale back to a single credit card
- Consolidate to a single checking account
- Roll retirement accounts from multiple companies into one retirement account
- Automate recurring transactions like: bills, debt payments, retirement contributions, etc.
- Schedule those transactions on as few days within the month as possible, thereby minimizing the frequency of cash outflows
- Diversify without over-diversifying: pick 5 mutual funds in your portfolio instead of 25 stocks
- Eliminate duplicative insurance coverages between policies
- Create a simple financial routine so tasks (i.e. planning, budget, etc.) don’t feel cumbersome
- Consolidate any debt to the extent you’re able—and ideally to the lowest possible rate
- Outsource what you can’t do or don’t want to learn, thereby saving time
- Insource what you can do yourself or already know how to do, thereby saving money
- Adopt a 1-in, 1-out policy for purchases (or even better 1-in, 2-out!)
The options are endless, and the sky is the limit…or perhaps your own creativity is the limit. Either way—simplification is a great thing. There is strength in simplicity. And if you don’t believe me, see how other, much wiser folks have articulated this message!
- “Simplicity, simplicity, simplicity.” –Henry David Thoreau
- “There is no greatness where there is no simplicity…” –Leo Tolstoy
- “…Simple can be harder than complex. You have to work hard to get your thinking clean to make it simple. But it’s worth it in the end because once you get there, you can move mountains.” –Steve Jobs
- “Simplicity is the ultimate sophistication.” –Leonardo da Vinci
- “Simplicity is the trademark of genius.” –Robin Sharma
- “Any intelligent fool can make things bigger, more complex, and more violent. It takes a touch of genius—and a lot of courage—to move in the opposite direction.” –E.F. Schumacher
- “A vocabulary of truth and simplicity will be of service throughout your life.” –Winston Churchill